SUMMARY OF BOARD DECISIONS

Summary of Board decisions are provided for the information and convenience of constituents who want to follow the Board´s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions are included in an Exposure Draft for formal comment only after a formal written ballot. Decisions in an Exposure Draft may be (and often are) changed in redeliberations based on information provided to the Board in comment letters, at public roundtable discussions, and through other communication channels. Decisions become final only after a formal written ballot to issue an Accounting Standards Update.

March 6, 2013 FASB Board Meeting

1. Upon any change in expectations of the crediting rate used to measure the insurance contracts liability, an insurer would:
   
   
   1. Reset the interest accretion rates in a manner that recognizes any changes in estimated interest crediting and related ultimate expected cash flows on a level-yield basis over the remaining life of the contracts
       
       
   2. Recognize in net income the difference between the prior expected cash flows discounted at the prior interest accretion rates and the revised expected cash flows discounted at the reset interest accretion rates.
       
       
   The degree to which the interest accretion rates for the portfolio is adjusted would reflect the relative value of the account balance to be credited and the extent changes in expected amount to be credited to those account balances are the result of changes in expected asset returns.
    
2. An insurer would apply the tentative decision on accumulated other comprehensive income (AOCI) for non-asset-affected cash flows. That means an insurer would present as part of AOCI the difference between the insurance contracts liability recorded on the statement of financial position (using the current discount rate) and the amount the insurance contract liability would be if it were determined at the interest accretion rates.
    

1. Eliminate the fair value option for firm commitments that would otherwise not be recognized at inception and that involve only financial instruments in paragraph 825-10-15-4(b).
    
2. Clarify that the Board´s previous decision to retain and modify the existing model for forwards and option contracts to purchase securities in the Certain Contracts on Debt and Equity Securities Subsections of Subtopic 815-10, Derivatives and Hedging—Overall, would extend to physically settled forward and purchased option contracts (with no intrinsic value at inception) to purchase or sell loans that do not meet the definition of a derivative in Topic 815.

"Significant judgment is required to allocate the premium to the insurer's obligation to each reporting period."

"A guarantee between related parties or entities under common control when the issuer of the guarantee is also not issuing similar guarantees to third parties, unless issuance of such guarantees is the primary business purpose of the issuing entity."